Iron ore price hike leads to increased profit at Portman

July 31, 2008

July 31st (The Australian Business) – PORTMAN’S first half net profit has more than doubled to $137.1 million from $57.1 million last year, with iron ore prices behind the rise.

Portman (ASX: PMM) said profits were boosted by the increase in the benchmark price of iron ore with increases of 80 per cent for fines and 97 per cent for lump agreed earlier this year.

The iron ore miner, which is 85 per cent owned by Cleveland-Cliffs, said it expects to produce 8 million tonnes of iron ore in 2008, with 7.7 million tonnes coming from its Koolyanobbing operation and 300,000 tonnes from Cockatoo Island.

Portman said the pre-feasibility study of a potential expansion of Koolyanobbing beyond 8.5 million tonnes a year is planned to be completed during the second quarter of 2009.